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EV Trading Rules
I’m a novice user of this website.
By experience I know for myself that I need very restrictive rules for my trading.
I'm studying the different EV data in order to establish a set of rules for myself.
When finished I would like to publish these rules on this forum so that I get the necessary feedback to further improve my trading rules.
In the daily repository file “PascalA_list.xls” there is a page called “Sectors”.
The “How_to_EV.pdf”, that I have found in this forum, writes [I]“that back-tests have shown that it pays to buy sectors with "Aver Tot EV" < 50% combined with a strong 2D Thrust. A low Aver Tot EV indicates that the sector has been under selling pressure, while the 2D thrust probably indicates that short players are covering.”[/I]
My question is now if the opposite is also true?
Is it safe to say that to go short on certain stocks, the sector must preferably have a “Strength Aver Tot EV” > 50% combined with a weak (negative) 2D Thrust?
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I would like to ask a second question in this same topic:
The sectors are sorted following a kind of rating.
I believe that this sector rating is used as a parameter in the stock rating.
Stocks with a rating above 80 are used for going long and stocks with a rating below 20 are used to enter short trades.
What is the formula behind the sector rating?
I think a combination of the AB value of the sector and the Extension Tot EV of the sector but I’m not sure?
Does anyone one know how the sectors are sorted?
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Still continuing my study I have yet another question:
In the EV Database is a page ([url]http://www.effectivevolume.com/content.php?144-nasdaq-100[/url] ) with a figure that displays the Large Players 20-Day Strength in terms of Money Flow.
This figure clearly shows that the current value is below 0% and below its 10 day Average.
Where can I find the exact numbers of these 2 values?
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[QUOTE=pdp-brugge;18714]Still continuing my study I have yet another question:
In the EV Database is a page ([url]http://www.effectivevolume.com/content.php?144-nasdaq-100[/url] ) with a figure that displays the Large Players 20-Day Strength in terms of Money Flow.
This figure clearly shows that the current value is below 0% and below its 10 day Average.
Where can I find the exact numbers of these 2 values?[/QUOTE]
These are all good question.
I propose that you continue your study and then send me one big list of questions.
We will use them to improve our FAQ
Thanks for your research work.
Pascal
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The study is still ongoing…
I’m still trying to find a (to my knowledge) logical connection between the different data in the repository files PascalA_List.xls & Sectors_table.xls
Now I have found that there are stocks in the main page which have a reference to a sector that does not exist in the “sector” page of the PascalA_List.xls nor in the Sector_table.xls
2 examples:
• Ticker CSC has as sector in the main page “Computer-Tech Services” -this sector is not to be found in the “Sector” page and not in the Sector_table.xls
• Ticker MDP has as sector “Media-Periodicals” – this sector is also unknown in the “sector” page and not found in the Sector_table.xls
This is strange and annoying because, according to the How_to_EV.pdf “[I]back-tests have shown that it pays to buy sectors with "Aver Tot EV" < 50% combined with a strong 2D Thrust[/I]”. If, for certain stocks, the information about the sector is not to be found, then these additional and perhaps productive selections cannot be made
The example stock CSC has a strong accumulation of large players buying after a very serious drop in share prices after disappointing earnings. The LER is at his top and the Strength Aver Tot EV is also high. I’m considering to buy this stock though I would like to see what the sector of this stock is doing (going down I presume)
I know I’m a novice user of this forum and most of the posts here are of a very high technical level
I also acknowledge that Pascal and Billy are very busy with the new real-time DMF system for which I also have great interest
Is there someone else with experience in analyzing the EV data that can help me?
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[QUOTE=pdp-brugge;18724]The study is still ongoing…
I’m still trying to find a (to my knowledge) logical connection between the different data in the repository files PascalA_List.xls & Sectors_table.xls
Now I have found that there are stocks in the main page which have a reference to a sector that does not exist in the “sector” page of the PascalA_List.xls nor in the Sector_table.xls
2 examples:
• Ticker CSC has as sector in the main page “Computer-Tech Services” -this sector is not to be found in the “Sector” page and not in the Sector_table.xls
• Ticker MDP has as sector “Media-Periodicals” – this sector is also unknown in the “sector” page and not found in the Sector_table.xls
This is strange and annoying because, according to the How_to_EV.pdf “[I]back-tests have shown that it pays to buy sectors with "Aver Tot EV" < 50% combined with a strong 2D Thrust[/I]”. If, for certain stocks, the information about the sector is not to be found, then these additional and perhaps productive selections cannot be made
The example stock CSC has a strong accumulation of large players buying after a very serious drop in share prices after disappointing earnings. The LER is at his top and the Strength Aver Tot EV is also high. I’m considering to buy this stock though I would like to see what the sector of this stock is doing (going down I presume)
I know I’m a novice user of this forum and most of the posts here are of a very high technical level
I also acknowledge that Pascal and Billy are very busy with the new real-time DMF system for which I also have great interest
Is there someone else with experience in analyzing the EV data that can help me?[/QUOTE]
For me to calculate a MF figure for one sector, I need at least four stocks that trade volume in that sector.
CSC and MDP are listed in Billy's "SIGR" defined sectors, which is the definition I use to rate sectors in the repository file as part of the individual stocks rating.
So, as you noted, there are sometimes "holes" in the data.
Anyway, I'd wait for a buy signal to buy in this market, because continued selling will send 80% or 90% of the stocks down, whatever the LER pattern of individual stocks.
Pascal
